Fonterra Bosses Should Share Pay Cut

Fonterra’s big earning management and directors need to show solidarity with supplier-shareholders by taking a pay cut themselves after today’s announcement by Fonterra that their forecast payout to dairy farmers has practically halved, says New Zealand First.

“Wouldn’t it be nice if Fonterra’s highly paid took a salary cut to show solidarity with the farmers who pay their wages,” says Richard Prosser, New Zealand First’s Primary Industries spokesperson.

“I am talking about the directors on $180,000, executives and highly paid senior staff like the 576 who earned over $160,000, and especially the 32 who earned over $500,000 last season.

“Based on Dairy NZ figures the average dairy farm will be shouldering a $200,000 loss as a result of this reduced payout.

“Today’s announcement also affects the returns for farmers in the 2015/16 season.

“Highly paid staff and directors taking a pay cut may be about symbolism, but it could just motivate them to find better ways to boost returns.

“The payout has virtually halved and there seems to be little concern about how this will affect our farmers or our economy. The least management should have done for their money is share the risk with those who own the business.

“New Zealand First will be watching closely to ensure everyone, including the government and the banks, are supporting our dairy farmers.

“New Zealand farmers, who generate three-quarters of our foreign exchange, need to be given more regard at this tough time,” says Mr Prosser.

ENDS

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